The importance of home insurance can often be overlooked. It is, sadly, often the case that people only consider home insurance when something goes wrong or a theft occurs. A home insurance policy is to protect you for the events that you can’t plan. Theft, floods, damage and fire are examples of unplanned disasters that can be costly if you do not have the correct home insurance policy to cover the events.
There are two types of home insurance; buildings and contents insurance. They should protect you for the unplanned and potentially costly events in your life.
Buildings insurance covers the damage of repairing your home in the event of flood, fire and damage. It can often cover any surrounding buildings on your property like sheds, outhouses, garages and driveways. It is important to check your policy thoroughly to check that it meets all of your needs.
This type of insurance is to cover the contents of your home. This could range from electrical items like a microwave, to carpeting or curtains. Specific high value items like antique jewellery or mobile phones are best to be discussed with your insurer. You may find that you need to include these items as an extra on your policy. Again, it is important to check the contents of your policy to ensure that it is tailored to meet your individual needs.
Many policies have an excess amount to be paid in the event of a claim. Please read your policy thoroughly, to educate yourself on any excess you will be liable to pay, in the event that you need to make a claim. With many policies available, you can shop around quite successfully to find a policy that you will be happy with.
Do I have to have a home insurance policy?
Some mortgage companies do insist that you have a home insurance policy in place, before they will agree a mortgage for you. This does not mean that you have to take their policy. You are, of course, free to shop around and find the best deal suitable for yourself.
Considering a home insurance policy can often be a daunting task. With many options available, it can be confusing with the range of policies on offer. It is important to consider your individual needs before accepting any policy. If you find a policy that you favour, but need added extras, then do speak with the insurer. Often policies can be tailored to suit your needs. It is best to be covered for all eventualities, than to find yourself with a policy that does not meet your needs after disaster has struck!